Pound Sterling Price News and Forecast: GBP/USD attracts some sellers amid Hormuz risks

FXStreet Team FXStreet

Pound Sterling remains depressed vs USD; GBP/USD holds above 1.3400 as traders await US CPI

The GBP/USD pair drifts lower during the Asian session on Friday, though it lacks follow-through selling and remains close to its highest level since late February, set earlier this week. Spot prices currently trade around the 1.3420-1.3415 region and seem poised to register strong weekly gains as investors now look to the latest US consumer inflation figures for a fresh impetus.

The crucial US Consumer Price Index (CPI) report is expected to show that inflation likely rose further in March amid the war-driven surge in Crude Oil prices. This could further discourage the US Federal Reserve (Fed) from cutting interest rates for a while. Adding to this, tensions around the Strait of Hormuz offer some support to the US Dollar (USD), which is seen as a key factor exerting some pressure on the GBP/USD pair. Read more...

Pound Sterling slips as renewed risk aversion lifts US Dollar

GBP/USD edges lower after four days of gains, trading around 1.3430 during the Asian hours on Friday. The pair depreciates as the US Dollar (USD) holds ground on renewed risk aversion, which could be attributed to the uncertainty over the United States (US)-Iran ceasefire. Traders await the US Consumer Price Inflation (CPI) report due later in the North American session.

Market sentiment remains cautious. Israel continues its strikes on Hezbollah. However, Israeli Prime Minister Benjamin Netanyahu said Israel will begin direct talks with Lebanon soon. Moreover, US President Donald Trump said US forces will remain deployed around Iran until full compliance with the agreement. Read more...

GBP/USD grinds higher but 1.3450 resistance refuses to budge

GBP/USD added 0.31% on Thursday, pushing into the mid-1.3400s as the US-Iran ceasefire continued to weigh on the US Dollar. But the rally is starting to feel laboured. The pair touched 1.3480 earlier in the session before pulling back, and the 1.3400-1.3450 zone is shaping up as a stubborn technical ceiling.

Sterling has been riding the same wave as the rest of the G10: the two-week ceasefire between the US and Iran has crushed the Dollar's safe-haven premium, allowing risk-sensitive currencies to recover from their early-April lows. GBP/USD bounced from around 1.3150 at the start of the month and has now clawed back roughly 300 pips. But Thursday's session showed signs that the easy gains are over. The February Personal Consumption Expenditures (PCE) report, released at 12:30 GMT, showed headline inflation at 2.8% YoY, above the 2.6% consensus. Core PCE ticked to 3.0% YoY, matching forecasts but underlining how far the Federal Reserve (Fed) remains from its 2% target. Monthly readings of 0.4% on both headline and core were firmer than expected. The data did not spark a meaningful Dollar rally, but it planted a seed of doubt about how long the ceasefire-driven selloff in the Greenback can last. Read more...

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